Kansas: Unpaid Sales Tax Shutters 10 Taco Ticos
- Sales Tax News
- Mar 6, 2013 | Gail Cole
There are many good reasons for a business to remit the sales taxes it collects. From an altruistic point of view, it helps the greater community by providing funds for education, fire departments, and other essential services. From a moral standpoint, it’s honest; customers pay that money with the assumption that it will be paid to the state. Selfishly speaking, it allows the business to remain in business.
A business in Kansas did not remit the sales taxes it collected at ten restaurants between June 2011 and October 2012, and now it's not in business. The Kansas Department of Revenue says that Ajax International Group, which owns the 10 Taco Tico restaurants in question, now owes more than $400,000 in retail sales tax to the Sunflower State.
As of yesterday, six Taco Ticos in Wichita and one each in Arkansas City, Derby, Dodge City and Topeka are closed. According to KSN.com, the Kansas Department of Revenue seized the restaurants “for non-payment of retail sales taxes totaling $435,000.” The restaurants could be reopened if the Kansas DOR and Ajax International Group arrange a tax payment plan.
It’s a cautionary tale. No matter what motivates you -- be it altruism, morals, or selfishness – there are good reasons to collect and remit sales tax.
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